Bocas Unidos Foundation

2007

By DON WINNER for Panama-Guide.com - Yesterday I had a long meeting with Alma Montenegro de Fletcher, the Executive Secretary of Panama's National Council for Transparency Against Corruption, regarding my ongoing investigation into questionable land disputes in Bocas del Toro. This article is the sixth in a series about Bocas del Toro. Our conversation focused on the issues surrounding Wild Cane Key and Catastro Resolution #350 which basically orders everyone off of the island until the issues regarding who has proper claim to the island are resolved. And, more than anything else, the problem is that a national level authority has issued an order in Panama City which is being totally ignored by local level officials. So, what do you do when you have a mutiny on your hands?

You Go There: The "problem" with Bocas del Toro is that it's located at the other end of a plane ride from Panama City. Local politicians can "get away" with shenanigans because the heavy hitters in Panama City have to make a special trip to go up there and see what's going on. Bocas del Toro is such a mess right now that it would be cheaper and more efficient to open up a special office manned and staffed by some kind of a special commission with representatives from every sector of the national level of government, to include (particularly) the Ministry of Government and Justice, the Public Ministry, and Catastro, as well as watchdog groups like the Defensoria del Pueblo and the National Council for Transparency Against Corruption, in order to put things in order.

Making A Special Trip: Alma Montenegro de Fletcher told me that they will be taking a delegation to Bocas next week, and that she is coordinating with all of those agencies to "force the local politicians and officials to do their jobs." It is absolutely amazing to think that the Governor of Bocas del Toro, the Mayor of Bocas, as well as the local representative of the Catastro office and lower level representatives at the offices of the Corregiduria on Isla Bastimentos could simply ignore a level from a national level authority with regards to the forced evacuation or eviction of Cinco Cruces de Oro from Wild Cane Key. In other words, now that we're here, lets go over there and clear off this island. Now.

Refusal to Notify or Comply: Richard Kiibler, the local representative of the Cinco Cruces de Oro company in Bocas del Toro, told me via email that "I told you then and I will tell you again if the day comes that the powers that be legally serve us notice to vacate we will comply with them as we very much believe in the laws of Panama and its legal system." You can understand their position. The Cinco Cruces de Oro company paid a lot of money for the ROP rights to that island, and of course they don't want to give it up. And the really weird part about ROP is that you have to have a warm body on the island actually doing things, or you can't claim to be in possession. So, Cinco Cruces de Oro has been paying employees to sit there all day and do nothing but "occupy" the island to improve or strengthen their ROP claim. That's one of the rules of this dumb-assed game in Bocas del Toro.

Contempt of Court: But then again, as far as the National Director of Panama's Tax (Catastro) office is concerned, Cinco Cruces de Oro is now in contempt of court. Or rather they are in Contempt of Catastro. The Tax Office by law has the legal right to issue resolutions which have, in effect, the power of law. They decide on the fate of each little claim for island lands. If the Tax office issues a resolution such as they did with Resolution #350, then it has the same effect as any other national law. And, claiming ignorance or waiting for an "official" invitation to leave the island as Cinco Cruces de Oro is wanting to do, simply is not going to work in the courts. They are, right now, in contempt. The problem is that the local officials in Bocas del Toro are not doing their jobs of enforcing the law. Now, why is that?

Let's All Go To Houston: Earlier this year the Cinco Cruces de Oro company flew the following people to Houston for "consultations,"The Mayor of Bocas del Toro - Eligio BinnsThe Representative of Bocas - Germain TejeiraThe Representative from Isla Bastimentos - Arcelio JeseeThe Representative from Punta Laurel - Hilda WrihstThe Representative from Tierra Oscura - Ernesto AvilesThe Representative from Cauchero - Dilio Becker And Finally, Juan Antonio Conquet.

The "60 Minutes" Test: According to Cinco Cruces de Oro Representative Frank Delape, he first denied having flown these people to Houston at all. When I informed him that there were home videos taken by the participants, that the people who went up there basically came back and bragged all over the place how they had been "wined and dined" in Houston, he admitted that the trip had taken place. But, he said, the purpose of the trip was not to buy influence from local politicians but rather to help "plan the future of Bocas del Toro" with regards to things such as a project to improve the local park, upgrade the water purification system, and to make other charitable contributions to the community. I told Frank that his explaination, while it could be perfect true and accurate, simply does not pass the "60 Minutes Test," meaning that the common man on the street simply needs to hear that these guys flew to Houston on a boondoggle and his mind is made up.

Two Plus Two Still Equals Four: Now, I'm no rocket scientist. And, I've spent exactly two days on the ground in Bocas del Toro investigating this stuff. So far I've been receiving a constant and steady downpour of information and documents from people who have been involved or affected in some way by this entire Bocas del Toro mess. And, I think I've got a pretty good handle on things, and so far I have not gotten to the real "meat and potatoes" of the conflicts on Isla Bastimentos between Cinco Cruces de Oro and Red Frog. I'm just getting warmed up.

Who's Paying the Bills: I was contacted by Scott Harris, a partner and the Executive Vice President of Pillar Panama, the company behind the Red Frog Beach development. They wanted me to go up to Bocas del Toro and investigate everything that was going on. I explained to them that I don't have the money or budget to go running around Bocas on a whim, and that they would have to pay my expenses or otherwise, good luck. He agreed, and I stipulated that I'm going to write what I find, and if it makes Red Frog look bad then too damn bad. When I contacted Frank Delape from Cinco Cruces de Oro I explained the same thing to him, and suggested that he pick up half of the tab and that Red Frog pick up the other half. At this point I'm billing both sides equally. Nice position for me to be in, eh? I've got two multi-million dollar companies paying for me to go bouncing all over Bocas del Toro to flip over rocks and look for worms. They can afford it.

Probably Not Going To Last: At this point Richard Kiibler is not taking my calls any more, after I wrote the "Getting Screwed on Wild Cane Key" article. Maybe he's out of town or something, but I've called and left several voice messages and I'm getting nothing. Considering what's going on with the Tax Office and Resolution #350, the local officials who are refusing to execute a national level order, and the plane ride to Houston, I doubt that the guys from Cinco Cruces de Oro are going to pony up. As a fair and balanced reporter, it's not looking too good for the visiting team right now. Hold on, let me call Frank and see what he says. Nope, he answered the phone but was in New York and about to go into a meeting so he could not take my call either.

A Public Company in the US: Normally when people are running around in Panama doing "stuff" they keep their cards close to their chest. In the case of Cinco Cruces de Oro (now Six Diamonds thanks to a name change) they are required to file reports with the Securities and Exchange Commission in the United States because they are a public company, and this point basically a penny-stock in development. With regards to their land acquisitions on Isla Bastimentos, they filed the following with the SEC:Playa Diamante. Pursuant to a purchase agreement, dated September 2006, by and between Landbridge and the sellers, Landbridge purchased approximately 200 acres of property in Panama located in the Archipelago of Bocas del Toro ("Playa"). Landbridge's purchase price for such property was approximately $4,000,000. Landbridge and SDRI were planning to develop this property under the name "Playa Diamante" pursuant to the Joint Venture on the terms set forth in the JV Agreement in separate phases. If all proposed phases of Playa were successfully developed, the Company currently contemplates that Playa would consist of approximately 200 acres of beach and resort communities on the Island of Isla Bastmentos (sp). Following the acquisition of Playa by Landbridge, however, litigation was commenced against certain control persons of SDRI (Frank Delape and Richard Kiibler) in Panama and Texas, claiming, among other items, that a third party had title to Playa and seeking damages. Although neither SDRI nor the Company is currently a named party to the litigation, the Company and/or SDRI, may in the future become a party to the litigation. SDRI, based upon consultation with its legal counsel in Panama and Texas, believes such lawsuits are without merit. The defendants in such actions are vigorously defending such lawsuits. In the event that such lawsuits are dismissed and the Company, SDRI and Landbridge believe Landbridge has clear title to Playa, of which no assurances can be given, the Company may reallocate a portion of the net proceeds from the Offering to develop Phase I of Playa. To date on behalf of defendants in such litigation, SDRI has spent funds defending such lawsuits from the net proceeds of the Bridge Offering and may spend additional funds from the net proceeds of the Offering. See "Risk Factors".

Not A Lawyer? Me Neither: Basically what all that says is that the company is not sure if they are going to be able to gain clear control of the land on Isla Bastimentos (which they misspelled in the SEC filing) so until that's worked out and the case filed in Federal Court by Red Frog against Frank Delape and Richard Kiibler in Texas is resolved, they can't be sure that they will be able to develop that property.

The Shack Is Still There: Cinco Cruces de Oro still has a small building and people occupying Wild Cane Key. In my meeting with Alma Montenegro de Fletcher yesterday she said, "no, it's gone. I've been assured that they have taken it down." Well yesterday afternoon one of my sources drove by there in their boat and the shack and people are still there. So what starts off with a simple refusal by Henrieta Hansell, the Corregidora of Isla Bastimentos, to enforce Catasto's resolution #350, leads to the trip her boss, the Mayor of Bocas del Toro Eligio Binns took to Houston with a group of local area municipal representatives, which points to greater and deeper conflicts between Cinco Crices de Oro and Red Frog (or Pillar, or Bastimentos Holding), and SEC filings and Federal Court cases in the United States. And, as of yesterday afternoon, the little wooden shack built by Cinco Cruces de Oro to keep the sun off of their workers who are occupying Wild Cane Key is still there. Photos are on the way, but, you know, this is Bocas baby... things take time.

Next Up on the Bocas Hit Parade: I understand that a three-man team comprised of Juan Antonio Conquet (the only non-politician who flew to Houston), Cirilo McSween, and the Chief of the Tax Office in Bocas del Toro Roberto Prestán are using their positions and influence to coerce local indians into selling their land rights to them, whether they want to or not. They are reportedly showing up with papers already prepared and presenting them to people who had no intention of selling their property. They are saying "listen, either you sign here and take the money, or we are going to take your land away from you anyway, so you had better just take the money and go away." Now, I have not been able to verify this yet, but I understand there are literally dozens of people who have received this "pitch." Alma Montenegro de Fletcher, when she heard this story, said "give me names..." That, my friends, will be in the next article. And in case you didn't know, Panama's President Martin Torrijos worked as the manager of a McDonald's restaurant owned by McSween's father when he was a young man. Chances are good that the younger McSween is taking advantage of his political clout without the knowledge or consent of either his father or Panama's President Martin Torrijos. In any case, this whole Bocas thing is still going to get bigger before it goes away. Stay tuned.

Copyright 2007 by Don Winner for Panama-Guide.com. Go ahead and use whatever you like as long as you credit the source. Salud.